Which of the following does NOT create a temporary book-tax difference?
A) Bad-debt expense.
B) Deferred compensation.
C) Depreciation expense.
D) Domestic production activities deduction.

Question

Quizplus · Accepted Answer

The domestic production activities deduction is a permanent book-tax difference, meaning it applies to both the company's financial statements and tax returns in the same way. The other options (A, B, and C) create temporary book-tax differences because they are deductible for tax purposes but may not be recognized as expenses on the company's financial statements until a later period.

Which of the Following Does NOT Create a Temporary Book-Tax